China Renaissance has raised its Apple price target by over 50% to $425, betting that the iPhone Duo will spark a major upgrade cycle despite limited evidence that early demand will translate into sustained sales.
iPhone Duo
iPhone DuoThe Chinese financial services firm upgraded Apple from Hold to Buy on November 11, reversing a downgrade issued just 99 days earlier. China Renaissance previously cited rising component costs and slowing services growth as reasons for its more cautious outlook.
Analysts Jack Zhou and Lemuel Lin now believe Apple’s first foldable iPhone could become a major source of growth. They expect the iPhone Duo to change how customers use their iPhones and potentially encourage earlier upgrades.
China Renaissance sees the iPhone Duo as an opportunity to drive growth over the coming decade, outweighing the financial pressures that prompted its earlier downgrade.